U.S. Hits Corps Pulling Burger King Move

CLOSING LOOPHOLES

Updated Apr. 14, 2017 3:02PM ET / Published Sep. 23, 2014 6:40AM ET

Chris Heigren/Reuters

On Monday, the U.S. Treasury Department announced new rules aimed at stopping “inversion” deals—agreements involving U.S. companies reincorporating abroad to avoid taxes. Burger King did an infamous deal with Tim Hortons this summer that took the burger chain’s headquarters to Canada. The regulations, which are effective immediately, will mostly hurt future inversion deals, but there are tax penalties for those that have already inverted. It may make things more complicated for Burger King, as the company has agreed to an inversion, but has not yet completed the deal. “If they are closed and done as of today, then they are not subject to this,” said a senior Treasury official. “If they are closed tomorrow or after, they are subject to this.”